My frustration is that after selecting a window button on my panel (Xubuntu 12.04), if I don't move my cursor away from the window buttons and begin scrolling (intending to scroll the content within the window), the windows manager cycles through all of the open windows.

Thanks for your quick response! Yeah I had already looked there and for some reason I don't have the option there... yes I am jealous. Are you working from the same distro as me? Or do you think my xfwm4 could be out of date?
–
jamin39Jan 19 '14 at 22:37

My version of xfwm4 is 4.8.3 and xfce4-panel is 0.1 it seems.
–
jamin39Jan 19 '14 at 23:10

@jamin39 I'm not at my computer right now, but I forgot to mention that I'm running Saucy so I was probably using version 4.10.1... I will check then I get back. The option might not exist in your version :-/
–
Seth♦Jan 20 '14 at 0:52

@jamin39 I have confirmed the option is only available in xfwm4 version 4.10. I think you might be able to upgrade xfwm without upgrading to 13.10, but I'm not sure as of yet.
–
Seth♦Jan 21 '14 at 20:40

Enable the ppa:xubuntu-dev/xfce-4.10 PPA and upgrade to Xfce 4.10. Then search for the handle to the left of the Window Buttons panel plug-in and right-click on it, then Properties, then disable "Switch windows using the mouse wheel".